“The combination ofHard Work +Smart Work =Efficient Work!”

Although the money you earn is a symbol of your hard work, you can make it work more efficiently for you by using it smartly. Investing your money in life insurance is one of the smart moves, as it offers many incredible benefits along with safety! However, one might wonder how to "smartly" make use of it. So, to help you top your insurance game, check out the5 Smart Insurance Tips!

Tip 1 - Pay Premiums Annually Instead of Monthly

LetÂ’s take an example: Mr Raj, a 28 year old, healthy non-smoking male has bought a Generali Central Term with Return of Premium policy with a sum assured of ?10 lakhs. The premium paying term and the policy term is 15 years. LetÂ’s see how much premium he ends up paying monthly and annually:

Monthly Premium(including GST) = ? 585 = 585 x 12 = ?7020

Annually Premium(including GST)= ? 6,625 = 6625 x 1 = ?6625

Difference of ? 395

If your further multiply ? 395 with the premium paying term i.e., 15 years you end up paying? 5,925 extra!

Tip 2 - Invest Longer - Allow Your Money to Compound

HereÂ’s a real-life example of two PapasÂ’- Smart Papa and Just Papa. Both invested in the same ULIP plan . Check out how their investments reap in the end.

45 years

25 years

? 4,000

? 2,000

? 9,60,000

? 9,60,000

20 years

40 years

?23,56,000

? 69,82,000

Do you see how, even though the total invested amount is the same (? 9,60,000), the gains that Smart Papa made are almost 3 TIMES the gains Just Papa made?This is the power of compounding. Even though Sachin invested half as much as Rahul, he invested steadily for 40 years, whereas Rahul invested for 20.

Tip 3 - Invest Young

Do you think long insurance terms mean more premiums? LetÂ’s bust that myth. HereÂ’s a useful insurance hack!

Say a 25 year old buys a term plan for a period 30 years - he has to pay a yearly premium of? 3000 for next 30 years = ? 90,000

Whereas, a 35 year old buys a term plan for a period 15 years - he has to pay a yearly premium of? 6000 for next 15 years = ? 90,000

When you start early and you can stay protected for long-term insuranceand you are entitled to lower premiums. Generali Central Life Insurance breaks down the impact of age on life insurance premiums for you.

Tip 4 - Choose Your Riders

Sometimes, buying different insurance policies to cover every risk separately might not be wise. You need not always buy different insurance policies for related needs. Riders are like addons to your insurance that provide an additional safety cushion. They can be added to your existing insurance cover. Here are some common riders you might want to consider adding:

1. Critical Illness Riders- that covers the life insured in case s/he is detected with any of the critical illnesses specified.
2. Accidental Death Benefit Rider- the rider offers an additional coverage equal to the actual sum assured in the event of demise due to an accident.
3. Premium Waiver Benefit Rider- if the life insured is unable to pay the premium due to specific events, like permanent or partial disability, the premium will be waived.

Generali Central Life Insurance offers many riders with their life insurance policies that you can take advantage of today!

Tip 5 - Adopt a Ladder Strategy

Your life goals have different timelines and budgets. Following one investment plan for all your goals is not feasible. Just like a diversified portfolio, buying different insurance plans secures your life and your familyÂ’s future while you sit back and accomplish your dreams. The idea of this strategy is to plan your insurance payouts to match debt repayments.

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To conclude, it also becomes essential to look for an insurance provider who can reschedule premium payments, offer grace periods for premium payments , or accept a partial payment if you are unable to pay premiums on time. Generali Central Life Insurance offers all these benefits, assuring you a smooth and hassle-free insurance experience.

Buying insurance might need you to focus on minute details that require effort at your end when reading the fine print. However, choosing a trusted insurance company that answers all your questions and offers trusted expert advice also counts as a smart move!